te Walmart acquires Tiger Global's stake in Flipkart for USD 1.4 billion | Zee Business

Walmart acquires Tiger Global's stake in Flipkart for USD 1.4 billion

US retail giant Walmart has acquired the entire stake of Tiger Global for USD 1.4 billion at an enterprise valuation of USD 35 billion, sources aware of the development said. 

Walmart acquires Tiger Global's stake in Flipkart for USD 1.4 billion
The transaction took place at an enterprise valuation of around 35 billion. Image Source: Reuters

US retail giant Walmart has acquired the entire stake of Tiger Global for USD 1.4 billion at an enterprise valuation of USD 35 billion, sources aware of the development said. The e-commerce firm Flipkart was valued at 37.6 billion during the last funding round in 2021.

"Walmart has acquired a stake of Tiger Global for about USD 1.4 billion. The transaction took place at an enterprise valuation of around 35 billion," a source, who did not wish to be identified, said.

When contacted Walmart spokesperson confirmed that the retail giant has acquired additional shares of Flipkart from Tiger Global without sharing the financial details of the deal.

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"We value Tiger Global's involvement and support over the last several years. We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested. We continue to be impressed with Flipkart's progress and remain focused on building a healthy, sustainable and profitable business for the long term, ensuring Flipkart continues to grow in an emerging and dynamic market," the spokesperson said.

Tiger Global was one of the initial investors in Flipkart in 2009. The firm initially invested USD 9 million in Flipkart in 2009 and gradually became one of the biggest shareholders in the firm, with a cumulative investment of USD 1.2 billion by 2017.

Even after selling a significant stake to Walmart in 2018, Tiger Global re-invested in Flipkart in 2021 to enhance its stake.

The firm has now exited from Flipkart after selling around 4 per cent that it held in the e-commerce firm.

According to sources, Accel Partners has also sold its 1 per cent stake in Flipkart to Walmart for about USD 350 million.

 

Written By: PTI
Updated: Tue, Aug 01, 2023
03:11 pm
New Delhi, PTI
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